A Beginner’s Guide to Applying for a Credit Card in the USA

Step-by-Step Guide to Applying for a Credit Card in America.

As an international student pursuing higher education in the United States, considering a credit card application may be a prudent financial move for the duration of your stay. For many international students, especially those hailing from countries predominantly reliant on cash or debit cards, the notion of applying for a credit card in the US can be daunting.

However, the US is largely a cashless society, rendering a credit card essential for convenience and a crucial tool in establishing a line of credit. This is particularly vital for securing everyday necessities such as a mobile phone or, in the future, purchasing a home.

Benefits of Credit Cards for International Students

Convenience

• Enable cashless transactions, aligning with the US’s predominantly cashless economy.
• Facilitate online purchases and reservations.

Financial Benefits

• Build credit scores, crucial for long-term financial stability.
• Access competitive interest rates and rewards programs.

Practical Applications

• Secure mobile phone contracts or utility services without requiring cash deposits.
• Enhance financial flexibility during your stay.

 Application Considerations

Requirements

• Valid US address
• Social Security Number or Individual Taxpayer Identification Number (ITIN)
• Proof of income or financial support

 Recommendations

• Research issuers offering international student-friendly credit cards.
• Understand terms, conditions, and fees associated with your chosen card.
• Manage credit responsibly to maintain a healthy credit score.

By embracing credit card options, international students can navigate the US financial landscape more effectively, setting themselves up for financial success during and beyond their studies.

So here are the steps to follow in order to get yourself on the credit ladder in the USA and secure a credit card:

Step 1 – Apply for a Social Security Number

The major requirement that banks have for applying for a credit card in the US is a Social Security Number (SSN). SSNs are assigned to people who are authorized to work in the US, and are used to report your wages to the government and to determine eligibility for Social Security benefits. If you are a student studying in the US on an F-1, M-1, or J-1 student visa, and are authorized to work in the US, you can apply for an SSN.

Find out if you can Work on an F1 Visa as an international student.

In order to apply for an SSN, you must first have employment in the US (for off-campus employment, you are going to have to receive authorization from the Department of Homeland Security). To apply for an SSN, you will need to complete an Application for a Social Security Care (Form SS-5) and show documents proving your work-authorized immigration status, age, and identity. You will then take your application and documents to your local Social Security office.

If you are not employed or have an SSN, never fear! Some banks will be willing to waive the SSN requirement for you.

Step 2 – Apply for Credit Cards

When applying for a credit card, you will need to provide a permanent address; you can use your school address for this. Having a steady source of income and a checking or savings account will boost your chances of being accepted. It is also a good idea not to apply for too many cards at once, because too many rejections will negatively affect your chances of another financial institution accepting your application. Try to submit only one or two applications, particularly for cards designed for students with lower credit lines.

You should also consider applying online on a secured site. This way, your personal data goes straight to the financial institution, eliminating the risk of a third party obtaining your information and reducing the possibility of identity theft.

Adro provides international students like you with the opportunity to have a credit card, even if you don’t have a social security number or credit history. Learn More.

Step 3 – Wait!

Once you have followed those steps, you will just need to wait for the approval decision. As an international students just coming into the USA, it can be very hard to secure credit, and you may find that you will be rejected from many banks. A few tips to help you overcome this are:

Secured Credit Cards

For many international students, it is difficult to get a credit card in the US because they have not yet spent time building up a credit history and because they are not US residents. You may want to consider using a “secured credit card.” The cards offer some of the conveniences of a credit card, but you secure your card with a deposit that becomes your credit line. These cards are reported as regular credit cards on your credit report.

Building a Credit History

Building a credit history is essential for many things in the US, including securing housing and utilities. To help you with this, you will want to manage your card balances wisely. Because of the convenience of credit cards, it is easy to overspend and not pay your balances on time. Remember that when you use your credit card, you end up owing that money. It is generally a good idea to avoid spending more than 30% of your spending limit. For example, if you have a card with a maximum spending limit of $300, you should charge more than $90 to that card in a month. It is also imperative that you pay your balance on time.